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Consumer Case Studies
 
Maharashtra State Consumer Disputes Redressal Commission, Mumbai
 
Justice M S Rane, President & V K Date, Member
 
Sipani Automobiles Ltd - Appellant
Versus
Shivaji Dasharat Babar & Ors – Respondents
 
Appeal Nos. 1603 to 1611 of 2003 Decided on 24.03.2004
 
Consumer Protection Act, 1986 - Section 15 - Appeal against holding sale of defective Autorickshaw - Manufacturing defect proved - Compensation of Rs. 20,000/- granted with interest @12% p.a. and cost of Rs. 5,000 - Whether report of Regional Transport Authority as to supply of defective Auto is relevant? (Yes) - Whether compensation interest and cost awarded are proper? (No, they are on higher side) (See Paras 10, 11) - Result - Compensation reduced to Rs. 5,000/-, interest reduced to 71/2% p.a. and cost to Rs. 1,000 - Appeal partly allowed (Para 13) - Whether appropriate directions be also given for return of vehicle on satisfaction of award for payment of price? (Yes) - Order accordingly.
 
Result: Appeal partly allowed accordingly.
 
IMPORTANT POINT

Where District Forum ordered refund of price of defective vehicle, it should also direct return of vehicle after award of compensation, interest and litigation cost is satisfied.
 
ORDER
 
Justice M S Rane, President - Rest of the Respondents not present although served.

We are proceeding to dispose of this group of appeals with a common judgment since the order impugned in various appeals is common as also the factual matrix as obtained in the matter herein. Appellants are also common in all these matters.

(For brevity's sake, parties in this judgement in the respective appeals are referred to as Appellant who are original O P No. 1 in all the complaints as "Manufacturer" and Respondent Nos. 1-9 as "Complainants" and Respondent No. 3 as "Dealer of the Manufacturer".
 
2.
Manufacturers have filed these appeals challenging the common order dated 19.8.2002 passed by the District Forum, Solapur ordering them to refund the amount paid by the respective Complainants towards the price of the vehicle, namely, autorickshaws known as Arjun 500, holding that the autorickshaws sold and supplied to the respective Complainants contained manufacturing defects. District Forum has also ordered payment of compensation, cost, etc.

3.
It is noticed that all the Complainants who purchased the vehicles in question during the similar range of time experienced various defects and faults.

4.
Autorickshaws were purchased by the respective Complainants for running as a public vehicle for the purpose of their self-livelihood.

5.
However, it is noticed that soon after the purchase and taking possession thereof, the vehicles did not function satisfactorily. There were numerous complaints, which the Complainants found in running/plying the autorickshaws. Matters were reported to the concerned authorities of the Manufacturer as well as Dealers. As nothing fruitfully turned out, the complaints were filed.

6.
Manufacturer appeared and contested the claims of the Complainants highlighting that the autorickshaws in question had been subjected to test and verification by the concerned Government authority, namely, Vehicle Research & Development Establishment, Ahmednagar and then only sold.

7.
In view of this, District Forum referred the matter to Regional Transport Authority, District Solapur, who after inspecting and examining the respective autorickshaws, submitted a report dated 4.1.2002, which also supported the grievances of the Complainants in page No. 18, in particular, para 2. District Forum has recorded the defects as noticed and stated by the said Commissioner.

8.
No other evidence for that matter or report of expert authority was produced by the manufacturer to dislodge the said report.

9.
That being so, District Forum has considered that the defects were of major nature, and made the award.

10.
Mr Kadam, Learned Counsel for the Manufacturer-Appellant submitted that Regional Transport Authority couldn't be said to possess the necessary expertise in the subject. However, it needs to be stated that no objections were filed by and on behalf of the Manufacturer/Appellant in the first instance before the District Forum. Apart therefrom, the authority to whom the matter was referred by the District Forum happened to be Regional Transport Authority and, as such, an officer directly concerned with the operation and running of the vehicles including public vehicles as also the authority of the State Government. Therefore, it is reasonable to presume as also assume that such official possessed required expertise in the matter.

11.
For all these reasons, District Forum accepted the said report and has proceeded to make the award. By and large, we find the same reasonable save and except rate of interest as also compensation and cost which appear to be on higher side. In our view, interest awarded @ 12% p.a. is on higher side as also compensation of Rs. 20,000/- and cost of Rs. 5,000/-.

12.
In our view, interest @ 7-1/2% p.a. and compensation of Rs. 5,000/- and cost of Rs. 1,000/- will be fair and reasonable in the facts and circumstances as obtained in the matter herein.

13.
We modify the impugned award accordingly. At this stage, our attention has been drawn to the order impugned in this appeal. It is not provided as to what will happen to the vehicles in question. Mr Chougule for some of the Complainants fairly stated that appropriate directions be given to cover the said lacuna. We are also providing appropriate directions for return of the vehicle on satisfaction of the award for payment of price as has been ordered.

Appeals are partially allowed with modification as under:-

1.
Finding of the District Forum holding that there are manufacturing defects in the autorickshaws of the respective Complainants stands confirmed.

2.
Amounts of price as awarded in the respective complaints vide operative Clause No. 2 in each of the complaints also stands confirmed.

3.
However, rate of interest of 12% p.a. stands reduced to 7-1/2%.

4.
Further, amount of compensation of Rs. 20,000/- stands reduced to Rs. 5,000/- and the cost to Rs. 1,000/-.

5.
We also order Complainants in the respective complaints that they shall return the vehicles in question on receipt of the price of the amount as ordered by the District Forum to the O P forthwith on receipt thereof.

6.
As far as the appeals are concerned, no order as to costs.

7.
Copies of the order herein to be furnished to the parties.

Appeals partly allowed accordingly.